Windstream Corp. announced it has formed Windstream Holdings, Inc., which will become a new publicly traded parent company of Windstream Corp. and its subsidiaries. The new company will trade on the Nasdaq Stock Exchange under the existing Windstream ticker symbol “WIN” beginning Sept. 3, 2013.
Windstream disclosed in its most recent earnings release that it was exploring the option.
The new ownership design will “enhance Windstream’s corporate structure and provide greater financial and strategic flexibility in the future,” according to a company statement. In addition, the new structure mirrors that of other companies in the telecommunications industry, it said.
One analyst noted that the holding company structure could make the integration of future acquisitions easier for Windstream, although it noted that no acquisition appear imminent.
At the end of trading on Friday, existing shares of common stock of Windstream Corp. will convert into equivalent shares of Windstream Holdings, Inc. stock on a one-for-one basis. The conversion and exchange does not require any action by stockholders of Windstream.
The existing Windstream board of directors and officers will oversee both companies. There has been no change in Windstream’s dividend practice as a result of the creation of the holding company.
Windstream stock (NASDAQ: WIN) closed trading Thursday (Aug. 29) at $8.01 per share.
Talk Business Staff
Latest posts by Talk Business Staff (see all)
- UAMS College Of Medicine Gets Reaccredited For Full Eight Years - March 31, 2015
- Bill Dillard, Johnelle Hunt Named 2015 Chancellor’s Medal Recipients - March 31, 2015
- 1 Million Cups Preview: Christie Ison With ARFoodJobs.com - March 31, 2015